Euro rallies after Macron wins

Wellington (AFP) – The euro rallied to a six-month high against the dollar in early Asia-Pacific forex trading Monday after pro-European centrist Emmanuel Macron won the French presidency in a resounding victory over far-right rival Marine Le Pen.

The single currency reached $1.1023, its highest level since November, from $1.0998 on Friday but the gains were modest compared to the reaction following his first round victory last month with markets largely pricing in Le Pen’s defeat.

However, the 39-year-old former investment banker’s victory effectively eliminates any risk of France leaving the single currency bloc.

“It’s probably a more measured response than I would have expected,” Imre Speizer, senior markets strategist at Westpac NZ told AFP.

“It’s the expected outcome. It’s more emphatic than expected but there’s no surprise element for the market in Macron winning.”